Abu Dhabi's isn't the only government that doesn't want to take a huge bath on its Citigroup investment. But fortunately for Little Tim Geithner and the Treasury Boys, they don't have to go to court to keep that from happening. They just have to hold their breath (and their 34% stake in Citi).
Seems the Treasury forgot that when a company has to flood the market with more shares in order to repay its gigantic TARP loan, the value of everyone's shares goes down. A lot. Including those of the people who made the gigantic TARP loan.
Based on today's offering price, Treasury has decided not to participate in the equity offering. We expect to divest the government's stake in
It'll also wait another three months to see if Vikram & Co. can get the stock price up to something worth selling at.
Treasury Halts Plan to Sell Off Citi Stock [WSJ]